Click here to close now.

Welcome!

Big Data Journal Authors: Elizabeth White, Lori MacVittie, Bart Copeland, Pat Romanski, Dana Gardner

News Feed Item

Crew Energy Inc. Announces 2013 Budget Targeting 15% Increase in Liquids Production- January 7, 2013

CALGARY, ALBERTA -- (Marketwire) -- 01/08/13 -- Crew Energy Inc. ("Crew" or the "Company") (TSX:CR) is pleased to announce its Board of Directors has approved a 2013 capital budget of $219 million. The 2013 program is designed to focus on the Company's operating strategy to invest in the highest rate of return projects while also further defining and capturing hydrocarbon resource. Funding of this program will come from cash flow from operations and bank debt. The 2013 program is expected to provide 15% liquids growth spearheaded by the drilling of 101 (99.0 net) wells with 87% of the wells targeting oil and 13% of the wells targeting liquids rich natural gas.

In 2012, Crew achieved its target exit rate of 28,000 boe per day prior to the closing of the Kobes disposition (sale of 625 boe per day) and is estimating fourth quarter production based on preliminary field estimates of approximately 27,000 boe per day, an increase of approximately 3% over the prior quarter. With the sale of 625 boe per day and the shut-in of 400 boe per day of natural gas production that became uneconomic with the expiration of a transportation contract late in 2012, Crew is currently producing approximately 27,000 boe per day. In the fourth quarter, the Company drilled 24 gross wells including one well at Kobes which was included in the fourth quarter disposition, one well each at Septimus and the Deep Basin which were part of the accelerated 2013 program; 13 wells at Princess including a horizontal well that tested at a rate of 800 boe per day based on 144 hours and eight heavy oil wells at Lloydminster which included three successful horizontal wells at Wildmere that tested two separate Mannville formations. We also initiated water injection on our eighth waterflood at Princess as part of our long term enhanced recovery project and completed a produced water disposal well at Septimus that will eliminate approximately $1.0 million of water handling costs annually.

Production growth is forecasted to accelerate throughout 2013 with a target exit rate of 29,000 to 30,000 boe per day and an annual average of 27,500 to 28,500 boe per day. This year's program will maintain a focus on secondary recovery programs at Princess and Lloydminster with a forecasted four to six new projects planned. These investments provide some of the highest rates of return in the Company and are expected to measurably reduce corporate declines over time. Capital will also be allocated to land retention and resource capture initiatives at Septimus and in the greater Kakwa area of the Deep Basin. Complementary asset acquisitions are continually being monitored and evaluated but are presently not part of the exploration and development budget.

Crew plans to invest in its four main operating areas; Lloydminster, Princess, Septimus and the Deep Basin in 2013. The Company's ability to invest at attractive economics in these areas has been enhanced by the Company's 2013 hedging program with 48% of forecasted natural gas production and 37% of forecasted liquids production hedged at attractive prices.

At Lloydminster, Crew expects to drill 60 wells where the Company is following up on a number of 2012 exploration and development successes on lands acquired in 2011 and on recently purchased Crown land. Company owned processing infrastructure provides excellent logistics and superior netbacks and the low capital costs consistently generate exceptional returns even in the current wide heavy oil differential environment. In addition to the drilling program, the Company plans to recomplete 40 to 60 wells in the area in 2013.

At Princess, Crew will focus on the optimization of existing production, implementation of three to five new waterfloods and the drilling of 21 wells. Crew's existing waterfloods have been very successful in stemming declines in pools where they have been implemented. Longer term, the Company is targeting decline rates in the area to be reduced to the 20 to 25% range. Based on this program, it is expected this area will generate significant positive free cash flow in 2013.

In the greater Septimus area, Crew will drill 11 (9.0 net) wells with seven (7.0 net) wells targeting liquids rich natural gas and two (2.0 net) wells targeting oil at Tower. Crew has reduced costs in this area by over 10% by optimizing capital efficiencies through pad drilling and modified completion techniques which have also resulted in improved individual well performance. The Company has also invested in water source and disposal infrastructure in the area to further reduce our cost structure, all of which has resulted in enhanced economics with rates of return improving from 20% to approximately 40% despite the current commodity price environment. Crew also plans to work with the owner of the Crew operated Septimus gas plant to expand the facility from its current capacity of 46 mmcf per day to 64 mmcf per day with construction expected to commence in 2013. The planned increase in capacity will allow for increased production from the area in 2014 and a corresponding decrease in per unit operating costs of greater than 15% due to a further improvement in operating efficiencies.

In the greater Kakwa area of the Deep Basin, Crew plans to drill seven (6.8 net) wells targeting liquids rich natural gas. This area is characterized by lower decline production and high liquids content in the 90 bbls per mmcf range of which roughly a third is condensate driving favorable returns. Crew is evaluating a more significant infrastructure expansion for the Kakwa area to take advantage of proposed pipeline expansions and provide for future growth.


2013 CAPITAL EXPENDITURE BY TYPE                                            
----------------------------------------------------------------------------
                                                                            
                                                                  ($million)
Drilling and Completions                                              151.8 
Equip/Tie-in/Facilities                                                25.6 
Optimization                                                           18.3 
G & A/Environmental/other                                              12.8 
Land & Seismic                                                         10.5 
                                                                 -----------
Total Capital                                                         219.0 

Crew's budget and guidance are best estimates based on certain assumptions including operating results and commodity prices and will be regularly monitored by management. Additional information regarding our 2013 budget can be found within the latest presentation on the Company's website at www.crewenergy.com. Our primary goal is to proactively manage our capital program as it relates to operational success and fluctuating commodity prices with a goal to maintain financial flexibility and achieve our production goals.

CAUTIONARY STATEMENTS

Forward-looking information and statements

This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words "expect", "anticipate", "continue", "estimate", "may", "will", "project", "should", "believe", "plans", "intends" and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following: the Company's planned capital expenditure program, drilling plans, estimated and expected production levels and commodity mix; anticipated reductions in decline rates at Princess, future commodity prices, the future differential between WTI prices and WCS prices, future royalty rates, the future exchange rate for the Canadian dollar to the US dollar, operating costs, transportation costs, general and administrative costs, interest costs, the Company's cash flow from operations, future results from operations; future development and exploration activities and related capital expenditures and adequacy of anticipated methods of financing, the number of wells to be drilled and completed and related production expectations; and the amount and timing of capital projects.

Forward-looking statements or information are based on a number of material factors, expectations or assumptions of Crew which have been used to develop such statements and information but which may prove to be incorrect. Although Crew believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Crew can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: the impact of increasing competition; the general stability of the economic and political environment in which Crew operates; the timely receipt of any required regulatory approvals; the ability of Crew to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Crew has an interest in to operate the field in a safe, efficient and effective manner; the ability of Crew to obtain financing on acceptable terms; field production rates and decline rates; the ability to replace and expand oil and natural gas reserves through acquisition, development and exploration; the timing and cost of pipeline, storage and facility construction and expansion and the ability of Crew to secure adequate product transportation; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Crew operates; the ability of Crew to successfully market its oil and natural gas products; ability to improve upon historical recovery factors.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to defer materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Crew's products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Crew or by third party operators of Crew's properties, increased debt levels or debt service requirements; inaccurate estimation of Crew's oil and gas reserve and resource volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Crew's public disclosure documents, (including, without limitation, those risks identified in this news release and Crew's Annual Information Form).

The forward-looking information and statements contained in this news release speak only as of the date of this news release, and Crew does not assume any obligation to publicly update or revise any of the included forward-looking statements or information, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

BOE equivalent

Barrel of oil equivalents or BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 mcf: 1 bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.

Crew is a Calgary, Alberta based oil and gas exploration, development and production company whose shares are traded on The Toronto Stock Exchange under the trading symbol "CR".

Contacts:
Crew Energy Inc.
Dale Shwed
President and C.E.O.
(403) 231-8850

Crew Energy Inc.
John Leach
Senior Vice President and C.F.O.
(403) 231-8859

Crew Energy Inc.
Rob Morgan
Senior Vice President and C.O.O
(403) 513-9628
www.crewenergy.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

@BigDataExpo Stories
Roberto Medrano, Executive Vice President at SOA Software, had reached 30,000 page views on his home page - http://RobertoMedrano.SYS-CON.com/ - on the SYS-CON family of online magazines, which includes Cloud Computing Journal, Internet of Things Journal, Big Data Journal, and SOA World Magazine. He is a recognized executive in the information technology fields of SOA, internet security, governance, and compliance. He has extensive experience with both start-ups and large companies, having been ...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
Companies today struggle to manage the types and volume of data their customers and employees generate and use every day. With billions of requests daily, operational consistency can be elusive. In his session at Big Data Expo, Dave McCrory, CTO at Basho Technologies, will explore how a distributed systems solution, such as NoSQL, can give organizations the consistency and availability necessary to succeed with on-demand data, offering high availability at massive scale.
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focu...
Operational Hadoop and the Lambda Architecture for Streaming Data Apache Hadoop is emerging as a distributed platform for handling large and fast incoming streams of data. Predictive maintenance, supply chain optimization, and Internet-of-Things analysis are examples where Hadoop provides the scalable storage, processing, and analytics platform to gain meaningful insights from granular data that is typically only valuable from a large-scale, aggregate view. One architecture useful for capturing...
The 3rd International @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - is now accepting submissions to demo smart cars on the Expo Floor. Smart car sponsorship benefits include general brand exposure and increasing engagement with the developer ecosystem.
SYS-CON Events announced today that Vitria Technology, Inc. will exhibit at SYS-CON’s @ThingsExpo, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Vitria will showcase the company’s new IoT Analytics Platform through live demonstrations at booth #330. Vitria’s IoT Analytics Platform, fully integrated and powered by an operational intelligence engine, enables customers to rapidly build and operationalize advanced analytics to deliver timely business outcomes ...
FedRAMP is mandatory for government cloud deployments and businesses need to comply in order to provide services for federal engagements. In his session at 16th Cloud Expo, Abel Sussman, Director for Coalfire Public Sector practice, will review the Federal Risk and Authorization Management Program (FedRAMP) process and provide advice on overcoming common compliance obstacles.
Software is eating the world. Companies that were not previously in the technology space now find themselves competing with Google and Amazon on speed of innovation. As the innovation cycle accelerates, companies must embrace rapid and constant change to both applications and their infrastructure, and find a way to deliver speed and agility of development without sacrificing reliability or efficiency of operations. In her Day 2 Keynote DevOps Summit, Victoria Livschitz, CEO of Qubell, discussed...
SYS-CON Events announced today that SoftLayer, an IBM company, has been named “Gold Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015 at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place November 3–5, 2015 at the Santa Clara Convention Center in Santa Clara, CA. SoftLayer operates a global cloud infrastructure platform built for Internet scale. With a global footprint of data centers and network points...
SYS-CON Events announced today that Open Data Centers (ODC), a carrier-neutral colocation provider, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Open Data Centers is a carrier-neutral data center operator in New Jersey and New York City offering alternative connectivity options for carriers, service providers and enterprise customers.
Thanks to Docker, it becomes very easy to leverage containers to build, ship, and run any Linux application on any kind of infrastructure. Docker is particularly helpful for microservice architectures because their successful implementation relies on a fast, efficient deployment mechanism – which is precisely one of the features of Docker. Microservice architectures are therefore becoming more popular, and are increasingly seen as an interesting option even for smaller projects, instead of bein...
When it comes to the Internet of Things, hooking up will get you only so far. If you want customers to commit, you need to go beyond simply connecting products. You need to use the devices themselves to transform how you engage with every customer and how you manage the entire product lifecycle. In his session at @ThingsExpo, Sean Lorenz, Technical Product Manager for Xively at LogMeIn, will show how “product relationship management” can help you leverage your connected devices and the data th...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
SYS-CON Events announced today that CodeFutures, a leading supplier of database performance tools, has been named a “Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. CodeFutures is an independent software vendor focused on providing tools that deliver database performance tools that increase productivity during database development and increase database performance and scalability during production.
Even as cloud and managed services grow increasingly central to business strategy and performance, challenges remain. The biggest sticking point for companies seeking to capitalize on the cloud is data security. Keeping data safe is an issue in any computing environment, and it has been a focus since the earliest days of the cloud revolution. Understandably so: a lot can go wrong when you allow valuable information to live outside the firewall. Recent revelations about government snooping, along...
In his session at DevOps Summit, Tapabrata Pal, Director of Enterprise Architecture at Capital One, will tell a story about how Capital One has embraced Agile and DevOps Security practices across the Enterprise – driven by Enterprise Architecture; bringing in Development, Operations and Information Security organizations together. Capital Ones DevOpsSec practice is based upon three "pillars" – Shift-Left, Automate Everything, Dashboard Everything. Within about three years, from 100% waterfall, C...
There’s Big Data, then there’s really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. Learn about IoT, Big Data and deployments processing massive data volumes from wearables, utilities and ot...
The explosion of connected devices / sensors is creating an ever-expanding set of new and valuable data. In parallel the emerging capability of Big Data technologies to store, access, analyze, and react to this data is producing changes in business models under the umbrella of the Internet of Things (IoT). In particular within the Insurance industry, IoT appears positioned to enable deep changes by altering relationships between insurers, distributors, and the insured. In his session at @Things...
SYS-CON Media announced that IBM, which offers the world’s deepest portfolio of technologies and expertise that are transforming the future of work, has launched ad campaigns on SYS-CON’s numerous online magazines such as Cloud Computing Journal, Virtualization Journal, SOA World Magazine, and IoT Journal. IBM’s campaigns focus on vendors in the technology marketplace, the future of testing, Big Data and analytics, and mobile platforms.